Volatility ruled the roost as key benchmark indices regained positive zone after slipping into negative zone from positive zone for a brief period in late trade. The barometer index, the S&P BSE Sensex, was provisionally up 101.81 points or 0.4%, up close to 165 points from the day's low and off close to 35 points from the day's high. The market breadth indicating the overall health of the market was positive.
Pharma stocks extended recent gains. PSU OMCs reversed initial gains as crude prices rose.
A bout of volatility was witnessed in early trade as key benchmark indices alternately swung between gains and losses. The Sensex extended gains in morning trade. Key benchmark indices retained positive zone in mid-morning trade. Key benchmark indices trimmed gains after extending intraday gains in early afternoon trade. Key benchmark indices recovered from lower level after trimming intraday gains in mid-afternoon trade. High volatility was witnessed as the Sensex regained positive zone after slipping into negative zone from positive zone for a brief period in late trade.
As per provisional figures, the S&P BSE Sensex was up 101.81 points or 0.4% to 25,575.70. The index jumped 137.43 points at the day's high of 25,611.32 in early trade. The index fell 64.20 points at the day's low of 25,409.69 in early trade.
The CNX Nifty was up 23.60 points or 0.31% to 7,650.45, as per provisional figures. The index hit a high of 7,658 in intraday trade. The index hit a low of 7,593.80 in intraday trade.
The BSE Mid-Cap index was up 47.42 points or 0.52% at 9,166.31, outperforming the Sensex. The BSE Small-Cap index was up 35.45 points or 0.36% at 9,985.48, underperforming the Sensex.
The total turnover on BSE amounted to Rs 3799 crore, lower than Rs 4722.59 crore on Wednesday, 11 June 2014.
The market breadth indicating the overall health of the market was positive. On BSE, 1,749 shares rose and 1,357 shares fell. A total of 83 shares were unchanged.
HDFC (up 2.56%) and HDFC Bank (up 2.43%) edged higher from the Sensex pack.
NHPC rose 2.5% to Rs 28.70. The company said during market hours that 14.73 kilometers Head Race Tunneling of Kishanganga HE Project through TBM has been successfully completed on 10 June 2014.
Some pharma stocks extended recent gains. Cipla (up 0.75% to Rs 414.75), Ranbaxy Laboratories (up 2.5% to Rs 471.50), Lupin (up 1.35% to Rs 993.50) and Sun Pharmaceutical Industries (up 2.86% to Rs 631.05) gained. Dr Reddy's Laboratories fell 0.08% to Rs 2,430.
PSU OMCs reversed initial gains as crude prices rose, reacting to increased violence in oil-producing Iraq. Indian Oil Corporation (IOCL) was down 0.2% to Rs 351. The stock hit high of Rs 356.75 and low of Rs 349.05.
BPCL was down 1.03% to Rs 599.75. The stock hit high of Rs 621 and low of Rs 594.60.
HPCL was up 0.18% to Rs 428. The stock hit high of Rs 437.05 and low of Rs 424.25.
Brent crude oil futures for July delivery were up 1.1% at $111.16 a barrel. Higher crude oil prices will increase under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
As per reports, the oil ministry is preparing a fresh proposal for the Cabinet to deregulate diesel price to reduce the government's fuel subsidy burden. The government's total fuel subsidy burden in 2013-14 was about Rs 140000 crore, with subsidy on diesel estimated at Rs 62800 crore, according to reports. The diesel subsidy figure has been progressively coming down as the government has followed a policy of hiking diesel prices by 50 paise a month. To protect customers from volatility in international oil markets, the government may allow fuel retailers to increase diesel rates up to a limit, which would be determined by the Cabinet, reports suggest.
Hindalco Industries jumped 3.7% to Rs 168.65 after its US unit Novelis Inc. on Wednesday, 11 June 2014, announced the commissioning of its aluminium recycling and casting center at Nachterstedt, Germany. Located adjacent to the company's existing aluminium rolling mill, the new plant will produce up to 400,000 metric tons of aluminium sheet ingot from recycled material annually, and is projected to be the world's largest aluminium recycling center, Novelis said. The new recycling center will support the company's drive to significantly expand its recycling activity in Europe, a region in which Novelis is already the leading recycler of used beverage cans. The center will process cans as well as numerous other forms of aluminium scrap from across continental Europe, Novelis said.
UltraTech Cement fell 0.31% to Rs 2,759.25. The company said during market hours that the scheme between Jaypee Cement Corporation (JCCL) and the company and its respective shareholders and creditors, for the acquisition of the cement unit of JCCL in Gujarat, comprising of an integrated cement unit at Sewagram and grinding unit at Wanakbori has been approved by the High Court at Bombay and the High Court of Allahabad.
The Demerger Implementation Committee constituted by the board of directors to exercise all powers and discharge all functions of the board for effecting the demerger in terms of the scheme, at its meeting held today, 12 June 2014, declared the scheme effective from 12 June 2014, which is the effective date.
Further, the Demerger Implementation Committee has also allotted 1.14 lakh shares of the company credited as fully paid-up to the equity and preference share holders of JCCL in terms of the scheme.
Shares of Jaiprakash Associates dropped 2.34% to Rs 81.35.
Ashapura Minechem and Orient Abrasives both edged higher in choppy trade after both these companies denied media reports that the former is set to acquire the latter in a deal worth Rs 400 crore. Orient Abrasives jumped 4.09% to Rs 24.20. The stock hit high of Rs 27.65 and low of Rs 23.80. Ashapura Minechem rose 2.03% at Rs 87.85. The stock hit high of Rs 91 and low of Rs 86.20. Orient Abrasives is engaged in the business of manufacturing and selling Calcined and Fused Alumina Products. The company also has a refractory products division which focuses on providing a wide range of special refractories and monolithics to meet the needs of the iron and steel industry. Ashapura Minechem is India's largest mine owner and exporter of bentonite.
Jammu & Kashmir Bank (J&K) rose 0.46% to Rs 1,631.40, with the stock reversing intraday fall in volatile trade after the bank's board approved a 10-for-1 stock split proposal. The announcement was made during market hours today, 12 June 2014. J&K Bank's board of directors at its meeting held today, 12 June 2014, considered and approved a 10-for-1 stock split.
KEC International rose 0.81% to Rs 124.35 after the company said it has secured new orders aggregating Rs 1209 crore in its transmission & distribution and cables businesses. The company announced the new orders during market hours today, 12 June 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 59.32, compared with its close of 59.27/28 on Wednesday, 11 June 2014.
Monsoon rains were nearly half below average level in the week to 11 June 2014, reflecting the late onset of the annual rains over the southern Kerala coast. Annual rains are important for India as most of its farmlands are dependent on rain for irrigation and more than half of its workforce is employed in agriculture.
In his reply on motion of thanks on President's address in Lok Sabha, Prime Minister Narendra Modi on Wednesday, 11 June 2014, said his promise to reduce inflation is not an empty slogan but a resolve. Just like the way Mahatma Gandhi had turned India's freedom struggle into a mass movement, India needs to make the quest for good governance a mass movement, the Prime Minister said. He urged all elected members of parliament (MPs) to resolve to ensure that every family in India has a house, with basic amenities of water, power and sanitation, on India's 75th anniversary of independence in 2022. The Prime Minister said a way would be found to achieve this, and he would seek the help and cooperation of all senior leaders in this endeavour.
Industrial production is expected to register a growth of 1.7% in April 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government is due to release industrial production data for April 2014 after trading hours today, 12 June 2014. Industrial production shrank for a second straight month in March 2014. Industrial production declined 0.5% in March 2014, compared with a contraction of 1.8% in February 2014.
The rate of inflation based on the combined consumer price index (CPI) for rural and urban India is seen easing at 8.4% in May 2014, from 8.59% in April 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government is due to release CPI inflation for May 2014 after trading hours today, 12 June 2014. CPI inflation accelerated to 8.59% (provisional) in April 2014, from 8.31% (final) in March 2014. Core CPI which excludes food and energy prices eased to 7.8% in April 2014, from 7.81% in March 2014.
European stocks edged higher on Thursday, 12 June 2014, as investors awaited data on US retail sales and jobless claims to gauge the health of the world's largest economy. Key benchmark indices in France and Germany were up 0.09% to 0.26%. UK's FTSE 100 was off 0.03%.
French consumer prices were unchanged in May from April and rose only 0.7% on the year, statistics agency Insee said Thursday. A fall in energy and manufactured goods prices offset rising food prices, Insee said.
Asian shares slipped on Thursday, 12 June 2014, after US stocks stepped back from record levels on Wednesday while civil war in Iraq supported oil prices. Key benchmark indices in China, Indonesia, Japan, Taiwan, South Korea and Hong Kong were off 0.15% to 0.76%. Singapore's Straits Times rose 0.09%.
Japanese machinery orders fell in April from the previous month. Core machinery orders fell 9.1% in April from a month ago, the Cabinet Office said Thursday.
South Korea's central bank Thursday kept its benchmark interest rate steady at 2.5%. The bank last moved the rate in May 2013 with a quarter-percentage-point cut.
Trading in US index futures indicated that the Dow could gain 14 points at the opening bell on Thursday, 12 June 2014. US stocks fell on Wednesday, with the Dow Jones Industrial Average breaking a four-day string of record closing highs, following the World Bank's reduction of its global growth forecast.
Adding to the sour tone, the defeat in a primary election of House Majority Leader Eric Cantor, a Republican, further dampened expectations of Washington passing any significant legislation before the November elections.
The US posted a $130 billion budget deficit in May and the smallest shortfall for the first eight months of a fiscal year since 2008, as a stronger economy and rising employment bolster revenue. The deficit last month was about $9 billion less than the $139 billion shortfall in May 2013, the Treasury Department said in Washington.
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